Nowadays, more and more companies prefer to work with customers and contractors through Data Rooms, because they are popular and provide a wide range of tools for business communication.
Data room – the perfect alternative to file sharing solution
The secure exchange of data – such as contracts, business figures, personnel and project documents, construction drawings, patient files, and much more – also across company boundaries, plays an important role in times of increasing digitization for optimizing business operations.
Close networking with suppliers, consultants and service providers, sales partners, and customers is an important prerequisite for future business success. The secure and at the same time fast and simple access to data and documents independent of time and place play a central role.
Traditional methods of data exchange nowadays often reach their limits. It concerns the lack of security and access control and the type of use of confidential documents, as well as the size of the data. In addition, there is often version chaos when documents are exchanged several times by e-mail, in which one can never be entirely sure whether the latest version of a file is actually being processed. In addition, e-mails are usually sent unencrypted, so that neither data protection is sufficiently guaranteed, nor is there any protection against industrial espionage.
Virtual Data Rooms (VDRs) present a highly secure and easy-to-use solution for cross-location and cross-company data exchange. With this software, companies can exchange and provide their sensitive data and extensive project documents online with the highest level of security and efficiency. With adjustable access rights, you control and manage who receives your data and how it can be used: whether only for viewing, downloading, or editing. Data Room provides its service for the secure exchange and synchronization of data as a virtual appliance for installation on its own server.
Virtual Data Room over file-sharing service
For most users, FTP / SFTP applications are not a real alternative due to their complicated setup and operation. Quite a few departments in companies use cloud storage or file-sharing services such as Dropbox, Google Drive, Microsoft OneDrive, or WeTransfer to exchange important project documents with customers or business partners. With these solutions, however, data protection is not sufficiently ensured.
Particularly confidential documents can also be protected with a watermark. In the Data Room, all documents are strongly encrypted with the Advanced Encryption Standard (AES) 256-bit and protected against unauthorized access. When files are uploaded to the Data Room, they are automatically checked for computer viruses and protect all users’ computers from potential dangers.
The ability to control access and manage files is just one aspect of Data Room features. Unlike other systems, a VDR gives you more control over your deal’s information. Files cannot be copied, misused, or leaked because:
- Documents are held in highly secure data repositories.
- You can deny document access even after a user has opened a file.
- You can analyze what people are doing in your Data Room.
- Personalized watermarks and customizable NDAs can also be used.
- In comparison with VDRs, sites such as Dropbox cannot give you the precise and detailed control settings needed for deals that involve various users and permission level demands.
Besides, many VDRs are optimized for mobile applications, have branding options, offer document translation functions, and can assign files to the appropriate index point. Features such as document review, comments, and marking allow users to draw attention to specific parts of text or entire pages and give them a detailed structure without changing the actual content.